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QY L"W' NDepartment of Energy 15$ggAlbuquerque Operations Office \ SS'

97 Q4P.O. Box 5400 % ga Y , 2ugfR13 7 : ;

Albuquerque, New Mexico 87115 N p" % 4 12-

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APR 7 1982 o sMr. Albert J. HazieDirector T d.lI, L/Q Q' /Radiation and Hazardous Waste <'# N

['Control Division N\<fColorado Department of Public Ilealth Q 'c } 3c4210 East lith Street g 3 gs

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Denver, CO 80220 1 5, cC\ P. f,,

Dear Mr. Hazle: O'x . .

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N/' ~ ~ 'Reference is made to Cooperative Agreement DE-PC0'4yl ALl6257/ etween the Stateof Colorado and the U.S. Department of Energy, efhetGe 0ctober 19, 1981, the2

purpose of which was to establish a plan of assessment and remedial action atthe Colorado inactive uranium mill tailing sites and any associated vicinitysites in accordance with the Uranium Mill Tailings Radiation Control Act of1978, Public Law 95-604.

Since execution of this Cooperative Agreement, we have identified certainprovisions thereof which warrant' modification. '. t is our belief that suchmodification would bet ter enable DOE and the State of Colorado to administerthe Cooperative Agreement. In this regard, it is requested that you reviewthe enclosed draf t modification to the Cooperative Agreement. Upon completionof your review, please provide your cocinents to this of fice.

Any questions concerning the modification should be directed to Donald J.Garcia at (505) 844-9325 who will be responsible for the administration of theCooperative Agreement , or Richard A. Marquez of our legal staf f at(505) 846-2119.

Fur the rmo re , for your future reference, I shall act as Contracting Officer fortransac tions between the S tate of Colorado and DOE.

52' Sincerely,q

it Original Signed By9 DOCKETED TheetiS V. N111

d . Theetis V. Hill-

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APR 161982 > Contracts negotiation nranchCPD:LCN:DJG ~

d f: 04-05 / 2558y 2~/

ontracts and Procurement DivisionC~.

NMSSMatt SECTION

Encl os ure \j.3 DOCKET CLERKSee Page 2 ~ v"

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APR 7 1982; Mr. Albert J. Hazie -2-

cc w/o Enclosure:R. H. Campbell, UMTRA, ALOR. A. Marque z, OCC , ALO

cc w/ Enclosure:Mr. William M. Shaffer, IIbfN%-('";. r !

Uranium Recovery Branch'

Nuclear Regulatory Commission'

7915 Eastern AvenueSilver Springs, MD 20910

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MODIFICATION OF COOPERATIVE ACREEMENT

Page i of 5

1. Modification No. M001 2. Ef fective Date:

3. Purchase Request No. 4. Cooperative Agreement No. DE-FC04-81ALl6257

5. Issued By: 6. State / Indian TribeDepartment of Energy State of ColoradoAlbuquerque Operations Office Radiation and Hazardous Waste DivisionContracts and Procurement Division Colorado Depa'rtment of Public HealthP.O. Box 5400 4210 East lith Street

Albuquerque, NM 87115 Denver, CO 80220 -

' 7. Accounti'ng and Appropriation Data (If Required):N/A

8. ( ) The above numbered Cooperdtive Agreement is modified to reflect theadministrative changes set forth in block 9.

( X ) This agreement is entered into pursuant to authority of Uranium Mill TailingsRadiation Control Act of 1978, Public Law 95-604. It modifies the above numberedCooperative Agreement. as set forth in block 9.

9. Description of Modification:,,

.

See continuation pages.

Except as provided herein, all terms and conditions of the document referenced in block 4, asheretofore changed, remain unchanged and in full force and effect.

.

10. ( ) State / Indian Tribe is not reqired to sign this document. -

(X) State / Indian Tribe is required to sign this document and return 3 copies to issuingof fice.

11. (Name of State / Tribe entered automatically) 12. United States of America

By(Signature of person authorized to sign) Theetis V. Hill

Contracting O fficerContracts & Procurement Division

Title Date Signed Date Signed

13. Nuclear Regulatory Commission

By(Signature of person authorized to si gn) Title Date Signed

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Modification No. M001Cooperative Agreement DE-FC04-81 AL16257Page 2 of 5

Purpose: Revision of Cooperative Agreemen:. Provisions

1. Article VIII, Advance Payments, is revised in its entirety to read as follows:

VIII. ADVANCE PAYMENTS

A. At the request of the State, in accordance with Article V, " Payments andAllowable Costs," and subject to the conditions hereinaf ter set forth, DOEshall make an advance payment, or advance payments from time to time, byTreasury check, to the State. No advance payment shall be made: (1) withoutthe approval of the Contracting Officer as to the financial necessity there-for; and (2) with+ut the submission by the State of OMB Standard Foi,n 270 and

i properly certified invoice or invoices.,

.B. Funds advanced to the State by DOE under this Agreement may be used by theState solely for the purposes of making payments for items of allowable costas defined in Article V, " Payments and Allowable Costs," or to reimburse theState for such items of allowable costs, and for such other purposes as theContracting Of ficer may approve-in writing. Any interpretation required as tothe proper use of such funds shall be made in writing by the ContractingO f ficer.

} C. The State may at any time repay all or part of the funds advanced hereunder.Whenever so requested in writing by the Contracting Of ficer, the State shallrepay to the Government such part of the unliquidated balance of advance pay-ments as shall, in the opinic i of the Contracting officer, be in excess ofcurrent requirements.

D. If upon completion or termination of this Agreement all advance payments havenot been fully liquidated, the balance thereof shall be deducted from any sumsotherwise due or which may become due to the State from' the Government, andany deficiency shall be paid by the State to the Government upon demand.

! E. Any interest earned by the State on advances of Government funds shall beremitted to the Contracting Of ficer when earned.

! F. Funds advanced hereunder must be deposited in a member bank of the FederalReserve System, or an " insured" bank within the meaning of the act creatingthe Federal Deposit Insurance Corporation (Act of August 23,1935, 49 Stat.684, as amended; 12 U . S .C . 264 ) .

l

G. Any and all advance payments made under this Agreement shall be secured, when.made, by a lien in f avor of the Government, paramount to all other liens, uponany millsite, vicinity property, depository site, residual radioactivematerials, and on all material and other property acquired for or allocated tothe performance at this Agreement, exce pt to the extent that the Government,by virtue of any other provision of this Agreement, or otherwise, shall havevalid title to such property as against other creditors of the State. TheState shall identify, by marking or segregation, all property which is subject

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Modification No. M001Cooperative Agreement DE-FC04-81 AL16257Page 3 of 5

to a lien in f avor of the Government by virtue of any provision of this Agree-ment in such way to indicate that it _ is subject to such lien and that it hasbeen acquired for or allocated to the performance of this Agreement; PROVIDED,

in the case of real property, or residual radioactive materials purchasedThatby the State under this Agreement, the State shall not convey or encumber, orsuffer to be encumbered, such property ercept in f avor of the Government or tothe extent otherwise allowed under this Agreement. The State shall maintainadequate accounting control over such property on its books and records. Ifthe State is authorized to sell or retain property acquired for or allocatedto this Agreement, such sale or retention shall be made only if approved bythe Contracting Officer, which approval shall constitute a release of theGovernment's lien hereunder to the extent that such property ic sold orretained, and to the extent that the proceeds of the sale are applied in,

reduction of advance payments then outstanding hereunder.

H. Upon the happening of any of the following events of default: (1) terminationof this Agreement by reason of f ault of the State; or (2) a finding by theContracting Of ficer that the State has failed to observe any of the covenants,conditions or warranties of this article or has tailed to comply with anymaterial provision of this Agreement; the Government, without limiting anyrights which it may otherwise have, may, in its discretion and upon writtennotice to the State, withhold further payments on this Agreement. Upon thecontinuance of any such, events of default for a period of thirty (30) daysaf ter such written notice to the State, the Government may, in its discretion,and without 1Laiting any other rights which the Government may have, take thefollowing additional actions as it may deen appropriate in the circumstances:1.

Demand immediate t apayment of the unliquidated balance of advance pay-ments hereunder; or

2. Take possession of and, with or without advertisement, sell at public orprivate sale, at which the Government may be the purchaser, all or anypart of the property on which the Government has a lien under thisAgreeme nt , and, af ter deducting any expenses incident to such sale,apply the net proceeds of such sale in reduction of any other claims of,

the Government againrt the State.

I. Notwithstanding any other provision of this Agreement, the State shall nottransfer, pledge, or otherwise assign this contract, or any claim arisingthereunder, to any party or parties, bank, trust company, or other financinginstitution.

I J. The terms of this Agreement shall be considered adequate security for advanceI

payments hereunder, except that if at any time the Contracting Of ficer decesthe security furnished by tbc State to be inadequate, the State shall furnishsuch additional security as may be satisfactory to the Contracting Of ficer, tothe extent that such additional security is available.

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Modification No. 001Cooperative Agreement DE-FC04-81 AL1625:Page 4 of 5

2. Article XVI, Estimated Cost, is deleted in its entirety and replaced with the followingArticle XVI entitled Cost Limitation of Obligation of Funds:

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XVT. COST LIMITATION AND OBLIGATION OF FUNDS

A. The total estimated allowable costs which will be incurred from the effectivedate of this Agreement through Seyfedes- 30, t% c (such period h'ereinafterreferred to the Cost Estimate Period) are as follows:

1. State - $ ;

2. DOE - $ C) ; and *--- --

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3. State and DOE - $ (hereinaf ter referred to as the TotalCost Limitation).

At such time as either party has reason to believe that the allowable costs itwill incur in performing its responsibilities under this Agreement will begreater than the estimated allowable costs shown above, then such party shallnotify the other in writing to that effect, giving its revised estimate ofallowable costs, and DOE shall issue a unilateral modification to this Agree-ment appropriately revising the estimated allowable costs shown above; Pro-

% vided, that, prior to being included as part of the Total Cost Limitation, the' estbnated allowable costs associated with remedial action shall be established

and revised execution and modification of Remedial Action Plans and Radio-logical Engineering Assessments, as appropriate, pursuant to the article ofthis Agreement entitled " Description of Remedial Action Program."

B. The State, for the Cost Estimated Period, has obligated funds in the amount of$ for payment of its share of allowable costs under this Agree-,

ment. The State shall not be liable in an amount in excess of the funds ithas obligated herein; however, DOE shall not be required to continue perfor-mance of this Agreement beyond such time as the Total Cost Limitation exceedsan amount 10 times the amount of the funds obligated .by the State. Prior toeach Government fiscal year or from tine to time during the performance ofthis Agreement , as necessary, the State shall increase the amount of fundsobligated by written notice to the Contracting Of ficer specifying the amountof such increase. Upon such written notice DOE may issue a unilateral modi-fication to this Agreement which reflects the increased obligation of funds bythe State. In the event the State f ails to obligate funds at a level neces-sary to ensure payment of its share of the Total Cost Limitation, DOE mayelect to treat such failure as a termination by the State pursuant to thearticle of this Agreement entitled " Term and Termination."

C. DOE, for the Cost Estimate Period: (1) has obligated funds in the amount of$ , for payment to the State for DOE's share of allowable costswhich the State incurs under this Agreement; and (2) will obligate funds in anamount suf ficient to pay to DOE contractors and subcontractors DOE's share ofthose allowabic costs which DOE incurs under this Agreement. DOE shall not be

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Modification No. M001Cooperative Agreement DE-FC04-81 ALl6257Page 5 of 5

liabic to the State in en amount in excess of the funds it has obligatedherein for payment to the State; however, the State shall not be required tocontinue performance of this Agreement beyond such time as such amount obli-gated by DOE is less than 90% of the amount shown in paragraph A.l. of thisarticle. Prior to each Government fiscal year or from time to time under thisAgreement, as necessary, DOE shall increase the amount of funds obligated byunilateral modification to this Agreement which reflects the increased obliga-

tion of funds by DOE. In the event DOE fails to obligate funds at a level

necessary to ensure payment of its share of the total allowable costs to beincurred by the State, the State may elect to treat such failure as a termina-tion by the State pursuant to the article of this Agreement. entitled " Term andTe rmination."

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D. The State shall not be required to pay for allowable costs incurred in excessof 10% of the Total Cost Limitation as it may be amended from time to time bymodification to this Agreement. DOE shall use its best efforts to perform itsresponsibilities under this Agreement within the esthnated allowable costs setforth in paragraph A.2. of this article. However, the Government and DOE donot guarantee the correctness of any such estimate of allowable costs andthere shall be no liability on the part of the Government or DOE by reason oferrors in the computation of estimates or differences between such estimatesand the actual allowable costs.

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E. DOE shall not be oblig'ated to pay for allowable costs incurred in excess of90% of the Total Cost Limitation as it may be amended from time to time bymodification to this Agreement. The State shall use its best efforts to per-form its responsibilities under the Agreement within the estimated allowablecosts set forth in paragraph A.l. of this arr.icle. However, the State doesnot guarantee the correctness of any such estimate of allowable costs andthere shall be no liability on the part of the State by reason of errors inthe computation of estimates or differences between such estimates and theactual allowable costs.

3. Article XXVI, Contracting Officer Representative, is revised in its entirety to read asfollows:

XXVI. CONTRACTING OFFICER'S REPRESENTATIVE

The work to be performed by DOE under this Agreement will be managed for DOE by the Mana-ger, Uranium Mill Tailings Remedial Actions (UMTRA) Project. The work to be performed bythe State under this Agreement is subject to the monitoring of the Manager, Uranium MillTailings Remedial Actions (UMTRA) Project Of fice, who has been designated by the Contract-ing O f ficer as " Contracting O fficer's Representative" (COR). A copy of such designationshall be furnished to the State. Said designation shall set forth the 00R's responsi-bilities regarding this Agreement. The COR shall not make any commitments or authorizeany changes which affect the Agreement s cope , price, terms or conditions; any request forsuch changes shall be referred to the Contracting Officer for action.

! 4. ParagraNi 7 of Appendix D, General Provisions, is deleted in its entirety and Paragraph 8,is redesignated as Paragraph 7.

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